You just described Netflix perfectly. I don't have a problem with this price point but I guess I am a little surprised that there are commercials. There is an ABC player that is free for the iPad but I don't know how it compares.
Do you have regular tv? That's at least a couple hundred a year & they still have commercials. Besides, with it on xbox 360, ps3, iPad, ipodtouch & iPhone. Even pc. It seems like a good deal.